please can someone help me

patchy987

hi guys, ok i tend to ramble so ill try to keep this quick. hubby works 2 jobs, 1 is full time and one about 30 hours, we have noticed today that the one that is a much higher salary has a tax code of BR and the lower paid job has his normal tax code on it. i have been looking at online tax calculators and it seems as if hubby is paying far too much, .... is there anyone out there that can tell me what we should do and if hubby will get any money back ?

chrisbur

patchy987 wrote: »

hi guys, ok i tend to ramble so ill try to keep this quick. hubby works 2 jobs, 1 is full time and one about 30 hours, we have noticed today that the one that is a much higher salary has a tax code of BR and the lower paid job has his normal tax code on it. i have been looking at online tax calculators and it seems as if hubby is paying far too much, .... is there anyone out there that can tell me what we should do and if hubby will get any money back ?

I am assuming that by normal code you mean 522L or something close to this. If this is the case then providing that he earns over about £7400 in the job with the normal code and the two jobs together do not add up to more than £38,500 then his tax should be about right.
How are you using the online calculators? The best thing to do is to add up the two wages and put the total in the calculator with his normal code. The tax figure should be close to the sum of the tax for the two jobs. The NI will not agree as this is worked out in a different way.

patchy987

at the moment he earns £8080 annually from the second job but from next week it is changing to only £4329 would he then need to change the tax code to the higher paid job or does it still not matter

CannyJock

patchy987 wrote: »

at the moment he earns £8080 annually from the second job but from next week it is changing to only £4329 would he then need to change the tax code to the higher paid job or does it still not matter

Shouldn't need to change tax code for higher paid job, that should be coded as normal for his main employment and have his allowances applied to it. Normally, the second job would be fully taxed without allowances if he's advised his employer it's a second job - it's then up to him to claim the difference back from HMRC.

Previous year (or this year's) P60's will detail total amount earned and total tax deducted. It's pretty straight forward to work out the tax that he "should" have paid from his tax code (add 5 to numbers to get personal allowance) and tax bands.

If he's over-paid, case of applying to HMRC. I'd always ask for a cheque refund rather than their option to increase his tax code for next year.

Applying for an over-payment of tax is very straight forward, no complex forms, just a simple letter quoting his NIC number and PAYE references of his employer if he has them from his payslips.

sarahlouise210

It is OK for this year - you may be due a small refund and this can be calculated after April -As the 2nd job income has now reduced, write to both tax offices (just to be on the safe side!) and ask for your tax code to be changed as from April. Give full details of your employers, payroll numbers and the anticipated incomes from both jobs.

sarahlouise210

CannyJock wrote: »

Shouldn't need to change tax code for higher paid job, that should be coded as normal for his main employment and have his allowances applied to it. Normally, the second job would be fully taxed without allowances if he's advised his employer it's a second job - it's then up to him to claim the difference back from HMRC.

Previous year (or this year's) P60's will detail total amount earned and total tax deducted. It's pretty straight forward to work out the tax that he "should" have paid from his tax code (add 5 to numbers to get personal allowance) and tax bands.

If he's over-paid, case of applying to HMRC. I'd always ask for a cheque refund rather than their option to increase his tax code for next year.

Applying for an over-payment of tax is very straight forward, no complex forms, just a simple letter quoting his NIC number and PAYE references of his employer if he has them from his payslips.

This is not accurate - tax codes are not always applied automatically or correctly (as is the case here!)
Tax refunds are NEVER given in tax code - only underpayments are collected through tax codes
P60s will be required for a refund after April (originals they will be returned)

CannyJock

sarahlouise210 wrote: »

This is not accurate - tax codes are not always applied automatically or correctly (as is the case here!)
Tax refunds are NEVER given in tax code - only underpayments are collected through tax codes
P60s will be required for a refund after April (originals they will be returned)

Ah, see what you mean, stand corrected. Was thinking about the self assessment form where Q19 asks if you want a refund or leave the overpayment to reduce your next bill. Form R40 for refunds doesn't have any option for this, only payment, must have been hallucinating again: http://www.hmrc.gov.uk/forms/r40.pdf

CLAPTON

Tax is all about the details... and there is very little here

so for each job you need to say

earning (taxable) total to date (i.e. this tax year)
tax deducted to date
tax code
period or month / week number
earning this month
tax this month

plus any other details ... I'm asumiong he has had only the two jobs this tax year ?

LisaContractorUmbrella

If I have understood correctly your husband is working two jobs at the same time - if this is the case the tax coding is probably correct. Everyone who works is allocated a tax code which determines the amount of 'free pay' they are entitled to before they are elligible to pay income tax e.g. 522L means that you can earn £5225 per year before tax becomes payable. However, this tax free allowance can only be applied to one job and not two. Therefore, your husbands other income will be taxed at BR (basic rate).